Using Savings Accounts To Introduce Your Children To The World Of Banking

Opening savings accounts for your children is often a great way to introduce them to the world of commerce. For many individuals, the first bank account they ever have is a savings account. Their money is easily accessible and the bank carries little or no risk of liability with these types of accounts. That's why savings accounts are easy to open; generally don?t require a credit history and are perfect for children.

As kids we probably all had a piggy bank and it was an exciting day when the piggy bank gets full, but then what? If we opened savings accounts for our children they could start putting away that money for a rainy day. Some kids get excited at the prospect of going to a bank and making a deposit into their very own savings accounts (although the tellers may not enjoy counting all the coins from the piggy bank).

When the teenage years come, it's a lot easier to transfer their pocket money into their savings account from your own accounts using online banking facilities, rather than carry around cash. The fundamentals of financial responsibility will start with children and their savings accounts, after all there's nothing more embarrassing to them than deciding to go to the movies with their friends and the ATM indicates that there's no cash available. They will monitor the balance in their account and hopefully learn to spend wisely.

Another advantage is that they can learn the concept of saving and begin to appreciate the value of money. When you tell your children that you're going on a beach holiday and they need to save if they want to spend while vacationing, you'll see a distinct change in their attitude to saving. All in all it's a worthwhile bet to open savings accounts for your children, no matter what their age.

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